Gold May be Forced to a Corrective Decline 16/2/2022

Mixed movements dominated the gold prices during the last trading session, recording the highest level at 1880, which formed a negative pressure factor that forced the price to retreat strongly towards the retest of 1844.

On the technical side, today, and carefully looking at the 4-hour chart, we notice the price stability below 1865, also confirming the breach of 1860, 23.60% correction, and stochastic gradually losing the bullish momentum.

The possibility of negative movements may be a valid and effective matter, provided that the 1844 support line is confirmed and that may enter the mission to visit 1838 and 1825 the purchasing concentration area.

Rising again above 1874 may lead gold prices to extend their gains towards 1890.

Note: the level of risk is still high and we may witness high volatility.

Note: Trading on CFDs involves risks. Therefore, all scenarios may be possible. This article is not a recommendation to buy or sell but rather an explanatory reading of the price movement on the chart.

S1: 1838.00	R1: 1874.00
S2: 1825.00	R2: 1895.00
S3: 1800.00	R3:  1910.00